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* Greg Hinz…
Illinois is out of the running for a prized 4,000-job assembly plant that Japanese auto makers Toyota and Mazda are planning to open in the United States.
The apparent reasons: lack of shovel-ready sites and the state’s failure to adopt a right-to-work law.
Mark Peterson, president and CEO of Intersect Illinois, the state’s privately run economic development corporation, said in an interview and email that while no formal announcement has been made, his sources tell him Illinois is not among the three or four finalists for the $1.3 billion facility.
“While we showed very well, particularly in the areas of workforce, and our proposal was very well received, in the end the site readiness of some other locations took us out of the consideration set going forward,” Peterson said. […]
“Recently, we have seen very public searches taking place for HQ and manufacturing facilities,” Peterson said. “The challenges with these is that although they are public in their media exposure, they are still very protected and confidential when communicating exactly what factors weigh in on final decisions. That said, many national site consultants charged with making recommendations for corporate relocations and expansions will not even consider a state that is not a right-to-work state. In this case, the three states I am told are still in the running are all right-to-work states.”
*** UPDATE 1 *** Greg Baise, president & CEO, IMA…
“When will Illinois lawmakers wake up and realize that their actions have real life consequences? For years, the IMA has pointed out that the state continues bleeding manufacturing jobs and losing opportunities for new plant expansions because of the high cost of doing business in Illinois while other states are gaining tens of thousands of jobs. The sad fact is that the General Assembly allowed the primary incentive program (EDGE) to expire during the time that the state’s bid was submitted. Illinois has many advantages including location, workforce, colleges and universities, infrastructure, and clean water but self-inflicted wounds are damaging our state’s economy.”
*** UPDATE 2 *** Illinois Working Together…
Today, Intersect Illinois announced that Illinois is no longer in the running for the Toyota/Mazda plant expected to generate as many as 4,000 jobs. Illinois lost out despite the Rauner Administration taking the lead in recruiting the companies and Gov. Bruce Rauner himself traveling to Asia last month to pitch top executives. Illinois has lost more than 12,000 manufacturing jobs since Gov. Rauner took office.
“Today’s announcement is yet another example of the economic damage Gov. Bruce Rauner has inflicted upon Illinois,” said Illinois Working Together Campaign Director Jake Lewis. “Gov. Rauner has created widespread economic uncertainty that has caused long-lasting damage to Illinois’ business climate. While Gov. Rauner trashes’ Illinois economy, job growth has sputtered and our bill backlog has soared.
“Instead of blaming workers for his failure to recruit new businesses to the state, Gov. Rauner should invest in Illinois communities and work collaboratively to find new ways to bring new jobs to Illinois.”
*** UPDATE 3 *** DGA…
Today, Crain’s Chicago reported that Illinois will not be a contender for a new Toyota factory and, rather than take any responsibility, Governor Bruce Rauner’s team quickly pivoted to bashing the state. While running for governor, Rauner touted himself as a natural salesman due to his business background. Instead, Rich Miller wrote, Illinois voters got “two and a half solid years of Rauner running down his own state.”
Rauner’s Asia trip was supposed to be the return of Rauner the Recruiter with a new Toyota factory as the crown jewel. But after failing to land the big fish, Rauner’s team quickly returned to their normal messaging, blaming Illinois. The CEO of Intersect Illinois blamed labor laws for Rauner’s failure and even claimed that Illinois was never going to get the plant anyway. He did not mention Rauner’s two-year budget impasse which drove up debt, devastated higher education, and slowed the state’s economy.
At least Intersect Illinois got a good meal out of it.
“Over and over again Illinois voters hear how Bruce Rauner’s failures are not his fault,” said DGA Illinois Communications Director Sam Salustro. “Governor Rauner just refuses to accept any responsibility. Now, his team is bashing the state for their own failure in recruiting companies, something Rauner promised voters he would succeed at. Rauner can’t blame away the fact that Illinois’ economy is lagging behind the state’s neighbors and the nation, and his failed leadership is at fault.”
*** UPDATE 4 *** Press release…
Senator Andy Manar (D-Bunker Hill) responded today to assertions that Illinois’ failure to adopt a right-to-work law factored into a manufacturer’s apparent decision not to site a factory here:
“When you have a governor who spends a significant portion of his time publicly bashing the state he is supposed to lead, it should come as no surprise that manufacturers would look elsewhere for a more stable home for their factories.
“Contrary to what Gov. Rauner and his administration would have people believe, labor unions are not to blame for all of Illinois’ problems. Two years of a devastating budget stalemate under the governor’s watch did nothing to improve the state’s economic outlook or its reputation in the corporate world.
“Turning Illinois into a right-to-work state and lowering wages for our workers does not mean the state suddenly would become an attractive location for manufacturers. Many more factors are considered when companies make these decisions.
“Illinois will become a more attractive site for companies when its state budget is in order; when it can show a record of investing in universities, colleges and public schools; and when its governor stops bad-mouthing the state and its people.”
* Related…
* Can manufacturing make a comeback in Springfield?
posted by Rich Miller
Wednesday, Oct 18, 17 @ 12:08 pm
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I would love to know how many Toyota/Mazdas are parked in K-12,higher ed and govt facilities throughout the state…..I think I will start this count and report back.
Comment by Blue dog dem Wednesday, Oct 18, 17 @ 12:13 pm
Completely predictable and the blame can fairly be assigned to the party always looking out for the Middle Class- Mike Madigan and the Democrats.
Comment by Lucky Pierre Wednesday, Oct 18, 17 @ 12:13 pm
===…blame can fairly be assigned to the party always looking out for the Middle Class- Mike Madigan and the Democrats.===
I’ll look forward to Gov. Rauner to bring the other “dozens” of companies he says wants to come here and hold a press conference stating “This company, (insert real name of a real company) wants to come here, but Madigan”
Why hasn’t Rauner named a single company he has recruited but is willing to blame Madigan as Rauner wants.
I mean, Rauner is talking to dozens, multiple dozens.
Not one company wants to leverage with Rauner the IL Dems?
Governor Rauner fails, with a site in Bloomington-Normal that use to manufacture cars sitting idle.
Comment by Oswego Willy Wednesday, Oct 18, 17 @ 12:18 pm
=site readiness=
Hmm, I thought for sure he would say taxes, or WC, or something else. But he said “site readiness”.
Funny, because LP translates everything into ” because Madigan”.
Someday he might be right.
Not today.
Comment by JS Mill Wednesday, Oct 18, 17 @ 12:19 pm
The apparent reasons: lack of shovel-ready sites and the state’s failure to adopt a right-to-work law.
That is a joke, right?
Comment by Ducky LaMoore Wednesday, Oct 18, 17 @ 12:20 pm
How the heck is there not a “shovel-ready site” on I-88 between DeKalb and Rochelle? Corn and bean fields?
That’s babbling gibberish in the service of nonsense.
If the guv and his econ. dev. whizs had made an effort to sell Illinois corn, beans and pork in China and Japan, they could have accomplished something.
Comment by wordslinger Wednesday, Oct 18, 17 @ 12:20 pm
and yet no one commented on RTW so far…
Comment by Anonymous Wednesday, Oct 18, 17 @ 12:27 pm
Because Illinois farmers have huge unsold quantities of corn, beans and pork? Do you have a source for this astounding revelation?
I think the middle class families in the Rochelle area would agree with the need for local control enterprise zones that could decide important issues like right to work instead of having these issues decided by the Speaker and Democrats.
Not a very funny joke to the middle class that are looking for good paying jobs at a Toyota factory.
Comment by Lucky Pierre Wednesday, Oct 18, 17 @ 12:28 pm
===I think the middle class families in the Rochelle area would agree with the need for local control enterprise zones that could decide important issues like right to work instead of having these issues decided by the Speaker and Democrats===
What do you base this thought on?
You started that with “I think”, so is there something tangible you’d like to attach to that thought?
Comment by Oswego Willy Wednesday, Oct 18, 17 @ 12:31 pm
Most companies in Illinois are non union and no one makes a company be union if they come here. So RTW is irrelevant to a company coming to Illinois. I read a stat recently that stated something like only 15% of workers in Illinois are in a union. That being said, RTW has nothing to do with this.
Comment by Crispy Critter Wednesday, Oct 18, 17 @ 12:33 pm
Without a quoted source from Toyota/Mazda, I call BS on Peterson’s claim that right-to-work was one of the two reasons. Also, the evidence available seems to point to a lot of hot air when it comes to top companies’ executives using RTW as a top-tier factor in determining locations. https://ler.illinois.edu/wp-content/uploads/2015/01/ILEPI-LEP-Economic-Commentary-Fortune-1000-Companies-and-CB-States.pdf
Comment by gadfly Wednesday, Oct 18, 17 @ 12:33 pm
So Toyota wants Right to Work so some union members can stiff their fellow members by not paying their dues? Why? Why would Toyota care? Or is this just spin by Peterson
Comment by Da Big Bad Wolf Wednesday, Oct 18, 17 @ 12:35 pm
I have a feeling — a strong one — that Mark Peterson is simply lying.
Right to work had nothing to do with this. At all.
Comment by Macbeth Wednesday, Oct 18, 17 @ 12:35 pm
No right-to-work law? Hasn’t Rauner, either as a candidate or as governor or both, said that he does not propose a statewide right-to-work law?
Comment by anon2 Wednesday, Oct 18, 17 @ 12:36 pm
So they are afraid that their employees would join a union? Just because a state doesn’t have right to work law doesn’t mean when you open shop it’s going to be a union shop. Sounds to me that they’re looking for a site with low wages and a work force that can be manipulated.
Comment by Forest through the trees Wednesday, Oct 18, 17 @ 12:40 pm
LP, I’m not paying your troll-toll today. It becomes embarrassing.
Why don’t you educate yourself on farm incomes over the last several years and then pick up “Economics for Dummies” and look up how that whole increased demand thing effects price.
Perhaps you could enlighten as well as to how a corn field isn’t “shovel-ready.”
Comment by wordslinger Wednesday, Oct 18, 17 @ 12:41 pm
I do, LP:
Pork Outlook:
While pork demand growth has supported the expansion of the recent steady breeding herd expansion, there are a couple of issue to remember. The first of these is that export sales have to continue growing. There are many things that can disrupt this growth and unfortunately, those include trade issues that could harm U.S. agriculture. Those start with NAFTA negotiations currently underway. As a reminder, Mexico and Canada have purchased 41 percent of our total pork exports so far this year. Concerns over trade with South Korea and China have also been in the news with those two countries representing an additional 19 percent of our pork exports so far this year.
https://tinyurl.com/y8p4ch76
Corn Outlook:
“In September, the USDA estimated we would have over 2.3 billion bushels of corn left over at the end of the 2016-17 marketing year. Finding a place to put those bushels ahead of a 14.2-billion-bushel corn projection estimates will test our capacity in the short term, making physical bushels very visible in some locations — especially those areas where large crops have been the norm these last couple years,” Setzer said.
https://tinyurl.com/yaukrfnz
Soybean Outlook:
Illinois farmers are expected to produce a record 601 million bushels of soybeans. That beats last year’s record of 593 million bushels.
https://tinyurl.com/y98oq9bo
Comment by Anon221 Wednesday, Oct 18, 17 @ 12:43 pm
Sounds like he had his presumed negatives ready to go.
Show me the winners, and give me attributed quotes, then I will give it credence.
Comment by Langhorne Wednesday, Oct 18, 17 @ 12:46 pm
OW should do some light googling before going on another rant. Rivian is using the Blo-No plant.
Comment by Anonymous Wednesday, Oct 18, 17 @ 12:50 pm
===Rivian is using the Blo-No plant===
“Using” is still debatable. You should try Googling the company yourself.
Comment by Rich Miller Wednesday, Oct 18, 17 @ 12:51 pm
Right to work was an issue. There are lots of sites on the I-88 corridor. When they say shovel ready, they mean shovel ready. If a road, utilities need to be extended to the project site the engineering and EPA work better be done, or well underway. The timelines were aggressive on this project.
Comment by 100 miles west Wednesday, Oct 18, 17 @ 12:51 pm
Anonymous @ 12:50 pm- Rivian is playing landlord to VW right now for storing the diesel problem vehicles. Not much else seems to be going on.
To the Update from IMA- Does Greg know Rauner DNFed the grant to IMA in the budget??? See page 3 of the analysis on the other thread.
Comment by Anon221 Wednesday, Oct 18, 17 @ 12:55 pm
==Because Illinois farmers have huge unsold quantities of corn, beans and pork?==
Lookit the guy who doesn’t get supply and demand.
Comment by Arsenal Wednesday, Oct 18, 17 @ 12:59 pm
Do you think the bid for Amazon will be affected by right to work?
Comment by Anonymous Wednesday, Oct 18, 17 @ 1:02 pm
Having done work with Japanese sutomanufactures- to say RTW had nothing to do with the decision is rediculous. The Japanese are not fans of the UAW
Comment by Sue Wednesday, Oct 18, 17 @ 1:02 pm
Does Baise not remember that the Guv was presumably ok with EDGE lapsing (since he never said much about it or pushed the legislature to keep it from expiring)?
And does Baise know that the Guv cut IMA’s $1,446,300 grant. And cut another $977,500 grant for IMEC. And cut another $2,000,000 from job training.
That’s a lot of cabbage he is taking away from efforts to improve manufacturing in the state.
Comment by Henry Francis Wednesday, Oct 18, 17 @ 1:02 pm
So the president of Intersect Illinois says RTW is the issue? Forgive me if I remain skeptical of his claim.
I’d submit a FOIA request to see the data to back that claim, but Intersect opts out of transparency.
DCEO, anything to say about this?
Comment by illini97 Wednesday, Oct 18, 17 @ 1:03 pm
===Rivian is using the Blo-No plant.===
The last time the company used a plant no cars ever rolled out and then they changed their name and business plan and are using the property as a parking lot.
Guess we’ll wait until… 2019… and see.
Comment by Oswego Willy Wednesday, Oct 18, 17 @ 1:03 pm
-Do you think the bid for Amazon will be affected by right to work? -
Nah, because it’s employees are like everyone else in the private sector: at-will.
Right-to-work is only increasing inequality in the state because it’s driven out the working and middle-class manufacturing jobs to other states.
But hey, nothing we can do about it, right?
Comment by DSKid Wednesday, Oct 18, 17 @ 1:04 pm
And to my point, to say there aren’t places that a Toyota or others could “rent” or actually buy from idle tenants and bring in manufacturers.
I find it difficult to believe, less an unrealistic time frame, that this state can’t accommodate a global corporation, manufacturers included.
Comment by Oswego Willy Wednesday, Oct 18, 17 @ 1:07 pm
Sidenote to Japanese manufactures: We never had a chance considering how the South Koreans and Japanese operate.
They do not like unions, despise the lack of flexibility and basically won’t build in a state without RTW or will flat out threaten to leave if manufacturing locations vote to unionize.
There is a reason Toyota relocated to Texas and Nissan workers in Tenn. recently voted not to unionize after the company threatened to relocate.
The odds of ever seeing another foreign manufacturer locate in Illinois is basically null.
Comment by DSKid Wednesday, Oct 18, 17 @ 1:08 pm
Yes, companies want to be able to %$*! over their employees, and thus want to be in right to work states. That is neither ground breaking or interesting, in fact it even makes sense if you have no morals and don’t care about your workers, but the question is why so many people think we need to pander to these companies that are fighting so hard to treat their workers like dirt. I’d like to understand more about not have shovel ready sights compared to other states; what did they have and how could IL have been better prepared for that?
Comment by Perrid Wednesday, Oct 18, 17 @ 1:09 pm
Toyota has a long history of selecting new plant locations that are not union friendly. selecting a RTW state gives them confidence that the new plant will be free of unions. Now you can split hairs about how RTW has nothing to do with IL losing out; but history says otherwise.
“In more than 30 years, none of the free-standing assembly plants owned by foreign manufacturers in the United States have ever been organized. (This doesn’t include factories that originally began as joint ventures, such as the former Chrysler-Mitsubishi plant in Illinois or the General Motors GM +0.36%-Toyota joint venture factory in Fremont, Calif., now home to Tesla.)”
https://www.forbes.com/sites/michelinemaynard/2014/02/15/three-key-reasons-why-the-south-will-keep-fighting-the-uaw/#1e5b092828b7
Comment by Texas Red Wednesday, Oct 18, 17 @ 1:10 pm
RTW has nothing to do with it
Janus vs. AFSCME will bring
National Right to Work
As soon as March
No the problem that killed us is found in what the credit agencies are saying.
We have no plan
For recovery.
Comment by Honeybear Wednesday, Oct 18, 17 @ 1:11 pm
- Anonymous - Wednesday, Oct 18, 17 @ 1:02 pm: I cannot imagine that RTW would be an issue for Amazon, but good question. I say that because they are building three logistic centers in northern IL that are all under a project labor agreement, and a fourth one elsewhere.
Comment by gadfly Wednesday, Oct 18, 17 @ 1:14 pm
I think the phrase “shovel ready” means more than just is the site vacant, i.e. a cornfield. I believe it means the necessary water, sewer and utilities have been run at least to the property line and are sized appropriately. Rail access for the site is probably a must as well. Rail extensions are never quick.
Comment by Tommydanger Wednesday, Oct 18, 17 @ 1:16 pm
==Do you think the bid for Amazon will be affected by right to work?==
Moreso by the right to program.
Comment by City Zen Wednesday, Oct 18, 17 @ 1:21 pm
I guess a real honest way to look at what actually won…
Site, challenges, workforce, universities, transportation…
See that, and then walk all of us through where Illinois lost out.
The tangible things should be obvious to see and point out.
Making a statement as Baise is, that’s fine to the overall, but I’d like to also see the real post-mortem and someone as respected as Mr. Baise to show those deficiencies.
Comment by Oswego Willy Wednesday, Oct 18, 17 @ 1:22 pm
Anon 12:50, what does Rivian do in Normal, besides not make cars?
An intense google search turns up an August PJS story that has the plant serving as a storage lot for recalled VWs.
Supposedly, there’s a “secret” prototype on-site. Presumably, the same one they’ve used to get handouts from other states over the last eight years.
Seriously, does anyone work there? What do they do, play corn hole all day?
Comment by wordslinger Wednesday, Oct 18, 17 @ 1:25 pm
=Janus vs. AFSCME will bring
National Right to Work=
Only in the public sector. Won’t help IL with manufacturing.
Comment by Robert the 1st Wednesday, Oct 18, 17 @ 1:25 pm
==Yes, companies want to be able to %$*! over their employees, and thus want to be in right to work states. That is neither ground breaking or interesting, in fact it even makes sense if you have no morals and don’t care about your workers, but the question is why so many people think we need to pander to these companies that are fighting so hard to treat their workers like dirt. ==
And yet, existing auto assembly plants in RTW states and the periphery supply manufacturing businesses that support them seem to have absolutely no problem attracting capable workers. And some workers even seem thrilled to have the pride of employment along with the paychecks that support their families and feed into other local businesses and the tax base.
Comment by Responsa Wednesday, Oct 18, 17 @ 1:32 pm
That Greg Hinz, just a mouthpiece for Rainer and the Chamber of Commerce. We *all* know the reason Illinois lost: Bruce V. Rainer. I look forward to the new era of peace and prosperity awaiting us in 2019 when Denocrats properly control everything again and taxes *finally* are jacked up to the proper levels to ensure wealth for all
Comment by JB13 Wednesday, Oct 18, 17 @ 1:35 pm
Maybe some of these articles might explain a lack of interest in unionization
http://jobstomoveamerica.org/osha-complaints-nippon-sharyo/
Comment by Anonymous Wednesday, Oct 18, 17 @ 1:37 pm
Non-union truck drivers and forklift operators at my company often make over $70k a year and have the same benefits as management. This notion that only union work pays well is not based in reality.
Comment by Robert the 1st Wednesday, Oct 18, 17 @ 1:38 pm
http://www.chicagotribune.com/business/ct-rail-car-making-violations-0427-biz-20150427-story.html
Comment by Anonymous Wednesday, Oct 18, 17 @ 1:39 pm
Funny how the IMA doesn’t mention RTW in their statement.
Comment by Nick Name Wednesday, Oct 18, 17 @ 1:45 pm
==Toyota has a long history of selecting new plant locations that are not union friendly.==
That they do. All 4 of Toyota’s plants in the USA are in RTW states. Out of all the Japanese auto manufacturers, only Honda has plants in a non-RTW state (Ohio), although they are also in AL and IN.
Comment by City Zen Wednesday, Oct 18, 17 @ 1:45 pm
More than just RTW these manufacturers are looking for states with “business friendly” environments across the board so not only do they not have to worry about those pesky unions representing employees they don’t have to worry about government interference in workplace safety.
https://tinyurl.com/kjmsgjj
Even if IL was RTW I don’t think we’d dramatically improve our manufacturing because of 1) other “anti-business” laws on the books and 2) due to low State revenues the over reliance on property taxes. Until IL is able to put into a place a dramatic decrease in property taxes that could remain a hindrance.
Comment by MyTwoCents Wednesday, Oct 18, 17 @ 1:46 pm
Baise: ==Illinois has many advantages including… colleges and universities==
Sure, less and less money to the colleges and universities year after year, but please do continue to tout them as something you’re proud of.
Comment by Dornford Yates Wednesday, Oct 18, 17 @ 1:48 pm
Hey LP:
“Not a very funny joke to the middle class that are looking for good paying jobs at a Toyota factory.”
Good paying jobs in a RTW state? You’ve got to be joking or off of your meds, right?
FYI: Wages in RTW states are 3.1 percent lower than those in non-RTW states, after controlling for a full complement of individual demographic and socioeconomic factors as well as state macroeconomic indicators. This translates into RTW being associated with $1,558 lower annual wages for a typical full-time, full-year worker.
Comment by HoneyBadger Wednesday, Oct 18, 17 @ 1:48 pm
Right-to-work is going to be an issue for large manufacturing plants, specifically Asian owned companies. You can like or not like right-to-work and either way, you’re opinion does not matter, what matters is the opinions of the people who make decisions on where these plants go and they like right-to-work states.
The lack of a site readiness program in Illinois is a self-inflicted wound and there does not appear to be a plant to address this. I believe every state that borders us has a “shovel ready” or “Site Certification” program and Illinois does not, not even a stinking plan. The lack of progress being made at DCEO and Intersect Illinois is a real failure of this administration which should have had a better plan and implementation strategy.
People can argue the pros and cons of right-to-work, there is not really a negative of having a a basic program that all our neighbors have that helps attract, retain and grow businesses.
Comment by Ahoy! Wednesday, Oct 18, 17 @ 1:49 pm
==I would love to know how many Toyota/Mazdas are parked in K-12,higher ed and govt facilities throughout the state==
I would bet more K-12. My school parking lots are packed with non-union-built cars from foreign manufacturers. Nissans seem to be the popular choice.
It is always interesting to see where people truly stand on union issues when it’s their money.
Comment by City Zen Wednesday, Oct 18, 17 @ 1:50 pm
So workers at a Toyota plant in a RTW state will only make $48,700 as opposed to $50,258 in a union state… or 3.1% less. Sounds better than $0, or 100% less that IL workers gain.
Comment by Robert the 1st Wednesday, Oct 18, 17 @ 1:53 pm
=== - HoneyBadger - Wednesday, Oct 18, 17 @ 1:48 pm:
Good paying jobs in a RTW state? You’ve got to be joking or off of your meds, right?
FYI: Wages in RTW states are 3.1 percent lower than those in non-RTW states, after controlling for a full complement of individual demographic and socioeconomic factors as well as state macroeconomic indicators. This translates into RTW being associated with $1,558 lower annual wages for a typical full-time, full-year worker. ===
That’s your threshold for a good paying job? 3.1%? Wow…
Comment by Birdseed Wednesday, Oct 18, 17 @ 2:06 pm
Might want to check out the much lower housing prices and real estate taxes in most current RTW states when comparing wages, too.
Comment by Responsa Wednesday, Oct 18, 17 @ 2:10 pm
“or 3.1% less. Sounds better than $0, or 100% less that IL workers gain.” Except that if enacting RTW drags everyones wages down 3.1%, we’re better off not having the plant in the first place.
Comment by Skeptic Wednesday, Oct 18, 17 @ 2:10 pm
=I would love to know how many Toyota/Mazdas are parked in K-12,higher ed and govt facilities throughout the state=
Maybe they don’t care if the cars are union built. They just want the best car at a reasonable price.
Comment by Anonymous Wednesday, Oct 18, 17 @ 2:16 pm
Responsa, low real estate prices are a sign of a flourishing economy and wealth creation?
Comment by wordslinger Wednesday, Oct 18, 17 @ 2:25 pm
=== - wordslinger - Wednesday, Oct 18, 17 @ 2:25 pm:
Responsa, low real estate prices are a sign of a flourishing economy and wealth creation? ===
He said no such thing. You just making stuff up?
Comment by Birdseed Wednesday, Oct 18, 17 @ 2:35 pm
–“Today’s announcement is yet another example of the economic damage Gov. Bruce Rauner has inflicted upon Illinois,”–
No, it’s an example of Illinois decades long decline in business environment and not keeping up with business demand. This one is not on Rauner, that’s a stupid press release that doesn’t even deserve publicity. There is enough things you can blame on Rauner, just stick to those.
Comment by Ahoy! Wednesday, Oct 18, 17 @ 2:38 pm
Could it be that Toyota didn’t want to locate in a state that didn’t even have a budget for 3 years - because the Governor was holding the budget hostage? And the Governor was also trashing that states higher ed, social services, and running up new debts of $15 billion. I would think most big companies would have a hard time thinking about locating in such a state, or believing such a Governor on anything he said or promised.
Comment by Joe M Wednesday, Oct 18, 17 @ 2:38 pm
==This translates into RTW being associated with $1,558 lower annual wages for a typical full-time, full-year worker.==
Is that net union dues?
==Maybe they don’t care if the cars are union built. They just want the best car at a reasonable price.==
The same can be said for any government service.
Comment by City Zen Wednesday, Oct 18, 17 @ 2:41 pm
High or low- in a healthy economy wages and living costs, especially housing/rental prices, need to be in sync. That’s what matters. Econ 101. And I’m pretty sure that Wordslinger knows this is what I am talking about even as he pretends otherwise.
Comment by Responsa Wednesday, Oct 18, 17 @ 2:42 pm
Responsa, I’m pretty sure lower wages and real estate prices reflect relatively more supply than demand for both.
Does that work on your Econ 101?
Comment by wordslinger Wednesday, Oct 18, 17 @ 2:49 pm
Would love to see a single economic policy solution from IL Working Together. So far they’ve provided zero value in the discussion.
Comment by Anonymous Wednesday, Oct 18, 17 @ 2:50 pm
Business can see Illinois structural budget deficit and that more tax increases are coming in the future.
Pretty good chance politicians will hit business taxes up for more revenue as often as they can because it is less politically painful than going after citizens money.
Businesses would be nuts to want to walk into that environment knowing the state will keep digging further into their pocket to cover ever increasing budget deficits.
Comment by Anon Wednesday, Oct 18, 17 @ 2:54 pm
==Would love to see a single economic policy solution from IL Working Together. So far they’ve provided zero value in the discussion.==
If we’re deferring to AFSCME, IEA or IFT for financial advice, we’re in more trouble than I thought.
Comment by City Zen Wednesday, Oct 18, 17 @ 3:02 pm
As I read the Intersect Illinois statement, it seems as though other states had sites that were more shovel ready, rather than Illinois not having shovel ready sites. Also, railroad access is an absolutely necessary criterion for auto manufacturing site selection. Railroad company industrial development folks are in the business of marketing shovel ready sites with necessary rail access. If II did not take full advantage of railroad resources in this area, they really fell down on the job.
Comment by stateandlake Wednesday, Oct 18, 17 @ 3:21 pm
Some finer points on the state’s farm economy in a discussion about an automotive plant. Never saw that coming.
Comment by Cool Papa Bell Wednesday, Oct 18, 17 @ 3:27 pm
Think about the amount of middle class jobs that could have been created here for years to come had it not been for Madigan and Co. “protecting” the middle class.
SMH
Comment by Peoria Citizen Wednesday, Oct 18, 17 @ 3:30 pm
==…Selecting a rtw state gives them confidence that the new plant will be free of unions.==
Except there are plenty of union places of employment in rtw states and plenty of non union plants in non right to work states. RTW doesn’t exclude unions. It puts stress on unions because some members can opt out of paying dues. Perhaps Toyota executives didn’t understand this.
Comment by Da Big Bad Wolf Wednesday, Oct 18, 17 @ 3:38 pm
Ok anonymous, Nippon Sharyo put workers’ lives at risk, including death by chromium poisoning and risky scaffolds. I’m not sure what point are you trying to make. Are you trying to say that in other states Nippo Sharyo would be free to kill and injure workers? I don’t think that is true.
Comment by Da Big Bad Wolf Wednesday, Oct 18, 17 @ 3:48 pm
Too bad we just can’t give them Bloomington-Normal
Plant. If they stay for 10 years and then let them be responsible to sell the plant or find another owner. The deal is better than right to work state!
Comment by bear3 Wednesday, Oct 18, 17 @ 3:53 pm
– If II did not take full advantage of railroad resources in this area, they really fell down on the job.–
I’m pretty sure that Union Pacific line parallel to I-88 between DeKalb and Rochelle would suffice.
Comment by wordslinger Wednesday, Oct 18, 17 @ 4:35 pm
Here’s my point. Union workers have representation when they have a complaint and protection. Without a union, you are afraid to say boo because you’ll be out the door tomorrow if you do. So workers have no right to correct something dangerous to them on their jobs. Capish?
Comment by Anonymous Wednesday, Oct 18, 17 @ 5:16 pm
Wordslinger @4:35p - Looking back at the previous press on this project I would say you’re correct. Sounds like all the right folks were involved.
Comment by stateandlake Wednesday, Oct 18, 17 @ 5:41 pm
So OSHA doesn’t inspect non union plants? Fascinating
Local controlled enterprise zones that decide RTW would have been worked very in this case instead of Bigfoot one size fits all policies dictated by Springfield politicians whose loyalties are divided.
Comment by Lucky Pierre Wednesday, Oct 18, 17 @ 5:46 pm
I’ll wager anything that the plant lands in a RTW state.
Comment by Ron Wednesday, Oct 18, 17 @ 6:09 pm
My nephew has worked at Honda in Ohio for more than 25 years. The advantage of being non-union was not wages but work rules. As a young design engineer he could work on the line and understand what could not be made. Had he worked at GM, he would not have been allowed to do that.
Having better designs going into production is a huge advantage.
I saw similar problems in the State. Work rules can be more important than wage differences.
Comment by Last Bull Moose Wednesday, Oct 18, 17 @ 7:01 pm
Lucky:
Please avoid drive-by rants and support your claims with actual, concrete, verifiable facts.
Until you do this, the likelihood of anyone taking your comments seriously diminishes with each post.
To the post:
As an investor, I would never commit capital to an unstable economic environment wherein the very foundation is crumbling by the minute. Why would Amazon/Toyota/etc?
Comment by Wacko Warner Wednesday, Oct 18, 17 @ 7:47 pm
Look on the brightside. We got gummy worms jobs at $30k/
Comment by Blue dog dem Wednesday, Oct 18, 17 @ 8:36 pm
Senator Manar doesn’t believe that labor unions are responsible for all of Illinois problems.
I agree. but the implication is that a Democratic Senator believes they.bear responsibility for some
Comment by Lucky Pierre Wednesday, Oct 18, 17 @ 9:28 pm
Surprising? Hardly. Even if Illinois is not really a “failed state”, it’s been doing a pretty good impression of one for the past ten years or so. I would have put the odds at 100:1 for Toyota, and less than that for Amazon (put your money on Texas or DC for that - as someone here already noted, that ship sailed a long time ago.
Comment by Anonymous Wednesday, Oct 18, 17 @ 11:16 pm
& they left out, due to Rauner’s lack luster leadership. Ya just don’t know where this guy stands, the goal post keep moving.
Comment by Anonymous Thursday, Oct 19, 17 @ 5:53 am
Today’s announcement of the UofI research center in Chicago is a direct appeal to Amazon HQ2. Chicago is a atop contender.
Comment by Anonymous Thursday, Oct 19, 17 @ 8:48 am